Reducing Annual Operating Cost by $7 Million for a Banking Sector Client through Market Intelligence Engagement
Banking Sector Overview The global banking sector is expected to witness positive growth over the coming years as major developed markets are experiencing increasing commercial banking activity as a result of strong economic performance and positive expectations. Despite this stable growth, the evolving customer expectations, lower return on investments, rising competition from FinTech providers, and [...]
Banking Sector Overview
The global banking sector is expected to witness positive growth over the coming years as major developed markets are experiencing increasing commercial banking activity as a result of strong economic performance and positive expectations. Despite this stable growth, the evolving customer expectations, lower return on investments, rising competition from FinTech providers, and regulatory pressures are increasing challenges for companies operating in the banking sector. As such, companies in the banking sector will need to revamp their traditional banking models in order to keep up with the fast pace of changes in the industry.
The client is a banking company based out of North America.
Increasing competition from FinTech companies made it difficult for the client to adjust quickly to the changes, not just in technology but also in operations and other facets of the industry. Also, owing to the evolving regulatory requirements, the banking sector client had to spend a large part of their discretionary budget on being compliant and on building systems and processes to keep up with the escalating requirements. In addition, due to the client’s inability to keep pace with the latest technologies and trends, they faced difficulties in delivering the level of services that consumers demanded, especially with regard to technology. As such, they wanted to thoroughly analyze the US market changes, competitors’ strategies, and industry developments to revamp their business models accordingly. To do so, they approached the experts at Infiniti Research to leverage their expertise in offering market intelligence solution.
Other major challenges that the banking sector client wanted to tackle by leveraging Infiniti’s market intelligence engagement were:
- Changing landscape for lending and payments mechanisms
- Regulatory compliance hurdles
- Falling net interest margins
The experts at Infiniti Research followed a four-phased approach that involved:
Market research study to analyze the current market landscape and identify the right scale of opportunities.
Customer intelligence study to analyze customers’ changing needs and demands. This phase of the engagement also involved analyzing reasons for customer churn.
Market scanning and monitoring to assess and predict changes in emerging regulations in the US banking sector.
Competitive intelligence engagement to compare the client’s offerings with that of the top companies in the US banking industry.
The insights obtained from Infiniti’s market intelligence engagement helped the banking sector client to assess local competition, evaluate the right scale of opportunities, understand the impact of emerging regulations, and analyze the changing landscape for lending and payments mechanisms.
By understanding customers’ needs and demands, they were able to adopt a customer-centric business model. This helped the banking sector client in delivering the level of service that consumers demanded. Identification of security and operational threats in advance helped them to build a more advanced information security system. This subsequently helped them to enhance customer experience and acquire new customers.
By identifying the cost-effective technologies in the US banking sector, the experts helped the client to reduce manual processing through automation of critical tasks. These improvements enabled the banking sector client to boost customer satisfaction and retention, while at the same time reduce annual operating costs by $7 million.